A01470 Actions:

A01470 Memo:

NEW YORK STATE ASSEMBLYMEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)

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BILL NUMBER: A1470
SPONSOR: Crouch (MS)
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TITLE OF BILL: An act to amend the tax law, in relation to exempting
ski resorts from sales tax on equipment that is used in the operation of
the business and from sales tax on electricity used in the operation of
the business
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PURPOSE OR GENERAL IDEA OF BILL:
To provide sales tax relief on operational expenses and electrical use
for ski resorts.
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SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Subdivision (a) of section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:
(44) (i) Machinery, equipment and other tangible personal property spec-
ified herein, sold to a person or entity operating a ski resort located
in this state for use at such ski resort, where such property: (A) will
be located at or installed in a facility or structure which is a part of
the ski resort; (B) is required for and directly related to the
provision of services by the operator of the ski resort; (C) is not
purchased by the operator of the purpose of re-sale.
(ii) Receipts from the retail sale of the tangible personal property
exempt pursuant to subparagraph (i) of this paragraph if purchased by an
operator of a ski resort, shall be exempt when purchased by a contrac-
tor, subcontractor or repairman for use as described in such subpara-
graph (i), where such property is to become a capital improvement to
real property.
(iii) In order to receive the exemption provided for under this para-
graph, the operator of the ski resort or a contractor, subcontractor or
repairman as provided in subparagraph (ii) of this paragraph shall
furnish to the vendor of the exempt property a certificate in such form
and containing such information as may be prescribed by the commission-
er.
§ 2. Subdivision (c) of section 1115 of the tax law is amended by adding
a new paragraph 3 to read as follows:
(3) Electricity of whatever nature for use or consumption directly and
exclusively in the operation of a ski resort shall be exempt from the
taxes imposed under subdivisions (a) and (b) of section eleven hundred
five and the compensating use tax imposed under section eleven hundred
ten of this article.
§ 3. Establishes the effective date.
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JUSTIFICATION:
In order to encourage economic investment and prosperity in New York
State, we need to provide the highest level of assistance and service to
our privately owned ski resorts who seek to promote business and tour-
ism. A sales tax exemption would provide such entities with a break in
their operating expenses and would thereby assist financially in their
efforts to carry out their programs and services. Additionally, the
exemption would level the playing field with the state run resorts that
already do not pay these taxes; also there are many businesses that do
not have to pay sales tax in relation to operational costs of their
respective business.
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PRIOR LEGISLATIVE HISTORY:
New Bill.
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FISCAL IMPLICATIONS:
To be determined.
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EFFECTIVE DATE:
This act shall take effect January 1, 2018 and shall apply to all tax
years commencing on or after such effective date.

A01470 Text:

STATE OF NEW YORK
________________________________________________________________________
1470
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
___________
Introduced by M. of A. CROUCH, GIGLIO, LOPEZ -- Multi-Sponsored by -- M.
of A. GOODELL -- read once and referred to the Committee on Ways and
Means
AN ACT to amend the tax law, in relation to exempting ski resorts from
sales tax on equipment that is used in the operation of the business
and from sales tax on electricity used in the operation of the busi-
ness
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (a) of section 1115 of the tax law is amended
2 by adding a new paragraph 44 to read as follows:
3 (44) (i) Machinery, equipment and other tangible personal property
4 specified herein, sold to a person or entity operating a ski resort
5 located in this state for use at such ski resort, where such property:
6 (A) will be located at or installed in a facility or structure which is
7 a part of the ski resort; (B) is required for and directly related to
8 the provision of services by the operator of the ski resort; and (C) is
9 not purchased by the operator of the ski resort for the purpose of
10 re-sale.
11 (ii) Receipts from the retail sale of the tangible personal property
12 exempt pursuant to subparagraph (i) of this paragraph if purchased by an
13 operator of a ski resort, shall be exempt when purchased by a contrac-
14 tor, subcontractor or repairman for use as described in such subpara-
15 graph (i), where such property is to become a capital improvement to
16 real property.
17 (iii) In order to receive the exemption provided for under this para-
18 graph, the operator of the ski resort or a contractor, subcontractor or
19 repairman as provided in subparagraph (ii) of this paragraph shall
20 furnish to the vendor of the exempt property a certificate in such form
21 and containing such information as may be prescribed by the commission-
22 er.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04407-01-7

A. 1470 2
1 § 2. Subdivision (c) of section 1115 of the tax law is amended by
2 adding a new paragraph 3 to read as follows:
3 (3) Electricity of whatever nature for use or consumption directly and
4 exclusively in the operation of a ski resort shall be exempt from the
5 taxes imposed under subdivisions (a) and (b) of section eleven hundred
6 five and the compensating use tax imposed under section eleven hundred
7 ten of this article.
8 § 3. This act shall take effect January 1, 2018 and shall apply to all
9 tax years commencing on or after such effective date.